Unreal recipe for the real economy

Victory Day, the Cabinet of Ministers supported the draft tax reform from the Ministry of Finance — and this is news that is worth discussing. Unlike many other Latvian news that are made exclusively for marine litter information and discussion space.

Here detection the chief of the security Police of the Russian financial Miliation track in the Latvian events on the occasion of the “so-called Victory Day” is not necessary to discuss — this is certainly information garbage. Taxes — is another matter. Here is not ideology, but Economics. This is really important and applies to all. Purse is one of the most sensitive human organs.

Let’s talk about what we all love unselfishly. About money.

The declared aim of the reform is to stimulate the production and advancement of employees. This rate of income tax from the population is decreasing, and the non-taxable minimum is increased. The minimum wage plan to raise up to 430 euros. However, employers are already making predictions in the spirit of St. John the Evangelist: that 430 euros of wages laborer is 532 euros spending to host small businesses such not to pull. So wait for 20 thousand bankruptcies and 60 thousand unemployed. Little everyone strives to offend is a Latvian small business knows well, and from the reform, as usual, no good waiting.

And who is waiting? Here the comrades of the commentators there is no agreement. Proponents of the reform say it benefits the poor, hired, and in the future business. Critics argue that the winner, as always, will be the rich and small business permanently bent: the former home and former laborers on the same flight Ryanair’and will serve to raise the economy of the brotherly Ireland.

Like, the changes include reducing the tax burden on workers with low incomes. But it is clear that compensating for the losses in budget revenues, the state will climb into the pocket of the same poor and dependent — only with the other hand. The planned increase in excise duties on alcohol and gasoline is still in store for them, the poor, the new spending. And pay more they will have not only tucking your used Volkswagen or buying a bottle of Chilean wine but every time, taking the purse: fuel price hike means the rise in price of any goods delivered to the store by trucks — that is just anyone. And for whom the price increase will be more painful: for rich or for poor?

If raising the excise tax will generate about fifty million euros, two hundred — from the ruthless fight against the shadow economy. And we know how meticulous happens in this issue, our state is able to get even such a large mafia, as the owners of the rented panel dvushek and private Tutors. Often forced tax Scam — salaries in envelopes, manipulation of micro-enterprises, about which so much was said before the New year is a way of survival of small businesses.

Microenterprises, by the way, reform is preparing cuts limit turnover more than doubled from 100 thousand euros to 40. How rope or veysya, I wrote a book called you in the loop. We have them strangled, choked.

Bad to be wood at the sawmill. Bad to be poor in a country where everything is done at the expense of the poor — including assistance to them.

Well, who else to take? Any tax reformer in Latvia is in the position of Tricky, Lata coat. Of money in the economy is not enough, and the number of ways to Supplement the budget is extremely limited.

Taxes paid by working — but work in Latvia is small, so the people of working age, especially if you have the skills, cutting the shaft to the West. Thereby increasing the disparity between those who budget fills and those on whom it is spent: retirees, for example. What is the disproportion is exacerbated by the rapid ageing of the population. The paucity of the budget turns out to be a paucity of social support and the severity of the tax policy (and hence low wages) — which in turn stimulates emigration.

If this vicious circle and there are ways to escape (which in itself is a question) — it is only by some radical, perhaps revolutionary actions. Incomparably more decisive than the ideas discussed today the Ministry of Finance. For example, by the unprecedented tax breaks for business. By severe reduction of the state apparatus. But bureaucrats touch the developers of the current reform is not going to — whatever seconds is not surprising.

Bureaucracy — the local state-caste, the forge of the ruling personnel, the backbone of the entire political and ideological system. The Latvian government exists to benefit the officials and not Vice versa.

Imagine: some sort of government, the practical use of which is zero, and even negative measured values — for example, the language Centre is completely abolished. And now the former worker of the Center, contingent Baiba Krumina, opens, say, a small catering company. Now in its interests to hire more cheap workers — and cheaper than all of some curly, MoE, Mohammed, Opanas, living here hand to mouth and barely be in Latvian “labrīt”. And here Baiba, before being fed through the most stringent language policy, is interested in its maximum softening. Previously, she was an opponent of the “oligarchs” and supporter of high taxes because you didn’t fill the budget, and eats it — now the opposite is true. So that will be Baiba now to vote for any of the parties of the government coalition? As any reasonable person (this, of course, purely speculative scheme) — no way. And if such Bib reaching a critical mass?

Understand why today’s elite will never dare to do radical steps.

But try irresponsible to dream again. For example, the struggle for the notorious development of the real economy is in Latvia by all means available. To stop the outflow of population through non-existent borders to the West still in today’s environment will not work — wages and social benefits there is during the lifetime of present generations will be incomparably higher. And without sufficient number of workers, what economic boom? Then, have labor to import. Lure. To create an attractive environment — in the area of national and language policy in the first place.

And with the Middle East and Africa to us still very few people will go — why, if France, Germany, Sweden benefits are, what there will never be? If on whom you can count is the citizens of the former USSR. For example, to the Ukrainians. After all, their homeland still poor Latvia, work permits Western countries to give them not expect, and we have at least they can explain in the former “language of interethnic communication”. Ukrainians and now it is not so rare in the Latvian enterprises.

And because of the financial investment we also desperately need. And whether the Latvian policy is rational, we wouldn’t have just resumed the program of “investments in exchange for residence permit”, but would come up with another dozen like her. And reached out to us… Yes, dear Russians.

Sounded to vengeance in the streets of Riga, muffling state language, dialects of the former fraternal Soviet republics. And flashed in the crowd, how in the fierce occupation times of continuous Slavic, and then another, and Central Asian individuals.

It turns out that even in the twelfth year of stay in the EU, perhaps, the only real and effective way to radically revive the Latvian economy could be returning to some extent to the Soviet Union. Back in the US Back in the US…

And you wonder why the economy was never a priority. And never will be — whatever was started now Premier Kuchinskis with GM Reizniece-soloi.